INTEREST ON FDR

[Manali Sharma]

If a person has RENTAL INCOME and has INTEREST INCOME ON FDR, whether it will be included in GST ANNUAL RETURN and if YES then what will be the TREATMENT for that?

[Ganeshan Kalyani]

Whether the FDR is in connection with the business?

[KASTURI SETHI]

If FDR pertains to non-business, interest is not to be shown. Pl. note that if any transaction is 'NOT supply ' as per definition of CGST Act the department has nothing to do with this. The column 'non-GST supply' has been created in the Annual Return for examination whether the party is right or not in this aspect. Whether transaction actually falls in the category of Non-GST supply ? Non-GST supply has no impact on GST. The taxer payers are committing Himalayan blunders by treating taxable/exempted supply as Non-GST supply. So one has to be ultra-cautious.

[DR.MARIAPPAN GOVINDARAJAN]

Your query is not complete. If the rental income is in the furtherance of business it will be included in the GST Annual Return. Interest income on FDR is not required.

AI Summary

Clarification on GST Annual Return: Include business-related rental income; exclude non-business FDR interest. Categorize correctly to avoid errors. A query was raised regarding whether rental income and interest income on Fixed Deposit Receipts (FDR) should be included in the GST Annual Return. Responses clarified that if the FDR is related to non-business activities, the interest does not need to be reported. It was emphasized that transactions not considered as 'supply' under the CGST Act should be categorized as 'non-GST supply' in the Annual Return. Misclassifying taxable or exempted supplies as non-GST supply can lead to significant errors. Rental income related to business activities should be included in the GST Annual Return.